Student Loan Debt: The Next Crisis in America?
An estimated two-thirds of United States’ college loan debt is held by women. Some of this debt was generated by women taking out student loans for their own education which they were unable to repay later and others when one or more parents co-signed for their children or grandchildren’s student loans. According to CNBC, 56 percent of college students today are female. Sadly, due to the 27 percent gender based salary gap, once they obtain their degrees, women are likely to earn less and take longer to repay their student loan debt.
Meanwhile, the cost of a college education has increased 150 percent since 1976 compared to the 20 percent rise in US median household income for the same period.
Two thirds of students who earned a four year degree in 2017 borrowed to pay for college.
As of November 2018, 44 million Americans owed more than $1.5 trillion in student loan debt – double the amount owed a decade ago, and in America, second only to mortgage debt owed.
The Delinquency rate on student loans is 10.7 percent in 2018. (over 90 days delinquent)
Long term, the Trump hopes to alleviate student loan debt by …”creating jobs in the private sector” that are above minimum wages. Surprisingly Trump slammed the federal government for making a profit on student loan programs at a time when borrowers were struggling to make ends meet. In the short term though, no proposal has been made to resolve the impending student loan crisis in the US. The cost of borrowing money for an education is rising; and the education costs are rising. If you need immediate relief for your student loan debt, here are some of the student loan debt relief options currently available:
- Student
Loan Payment Deferment:
- During full time school attendance: Many students know that student loans are usually deferred as long as you are a full time student. If you receive a bill while you attend school, contact your student loan servicer immediately and make them aware you are still attending school full time.
- Once you stop attending school full time: If you cannot afford to make your student loan payments, and you can prove your economic hardship with paystubs and household expenses, contact your lender and ask for a deferment of your student loan repayment. Some lenders will give you the deferment upon request without requiring documentation, but continue to charge interest on your note. Ask your student loan servicer what your options are.
- Student
loan forgiveness or student debt relief:
People who owe student loans may apply to have their loan forgiven if
the student loans fall into eligible definitions such as
- The learning institution closed before you received your degree.
- You were falsely certified due to identity theft.
- You have a debilitating disability.
There are more qualifying circumstances for student loan forgiveness, but given the rise of delinquent student loan debt, don’t ignore the problem. If you are having trouble making your student loan payments, make the call to learn how you can get student loan debt relief.